Talent Management Challenges In Small and Medium-Sized Organizations

Performance Review Processes & Talent Management

Challenges in Small Businesses



76% Female

24% Male



We conducted interviews with organziations in the following industries:

Finance

Hospitality

Internet Services

High-Tech

Marketing

Manufacturing

Education

Professional Services

Retail

Non-Profit



With: CEOs(2%), VPs(17%), Directors (31%), Managers (25%), Consultants (16%), Others (9%)



Requirements for a Performance Management System:

When talking with potential customers about what they would look for in a performance review system, we consistently heard the following requirements:



1. Simplicity

2. Easy to Use, Intuitive

3. Encourages managers to have performance conversations with employees.



Most employees are asked to perform self assessments 95%



Review Cycles and Timing: 34% Cycle based on hire date, 66% Focal review cycle.



60% Performance reviews are done annually

25% Reviews are conducted more than once a year.

15% Do not conduct formal reviews



85% Keep paper copies of the revies.



Performance Review Tools

54%Pen and Paper

23%An automated system provided by their payroll vendor or PEO

22%A Commercial Software



16% Track goals and performance separately



64% Use comptencies in performance reviews



Most track between 3 & 7 competencies



18% Want to have performance appraisals integrated into an HR suite.

44% Prefer best-of-breed systems.

38% No opinion or it depends.



64% or would use Social Performance Management Tools



84% Most reviews determine bonus pays and salary increases.



32% are satisfied with their current review system or approach.



The favorite reporting tool: Microsoft Excel



The 5-Point Rating Scale is the most common system.



Main benefits of frequent performance reviews

More dialogue between managers and employees.

Better tracks the dynamic nature of business

Performance issues are identified faster.



Top benefits of automating performance reviews:

Increase employee engagement

Make better business decisions

Lower costs. Performance Review Processes & Talent Management Challenges in Small Businesses 76% 24% We conducted interviews with organizations in the following industries: Interviewed's locations 84% O USA finance hospitality Internet high-tech marketing manufacturing education professional services non-profit 16% other retail services with: CEOS (2%) • VPs (17%) • Directors (31%) Managers (25%) • Consultans (16%) • Others (9%) Requirements for a Performance Management System a b When talking with potential customers about what they would look for in a performance review system, we consistently heard the following requirements: Simplicity Easy to use, intuitive Encourages managers to have performance conversations with employees Most employees are asked to perform self assessments. Review Cycles and Timing performance reviews 60% are done annually • Cycle based on hire date • Focal review cycle reviews are conducted 25% more than once a year 34% 95% do not conduct formal 15% reviews 66% 85% keep. paper copies of the reviews Performance Review Tools 64% comptencies in performance reviews use • pen and paper • an automated system provided by their payroll vendor or PEO • a commercial software Most track Z87 between competencies 22% 16% Track goals and performance separately 54% 23% • Want to have performance appraisals integrated into an HR suite 64% or would use • Prefer best-of-breed systems SOCIAL PERFORMANCE MANAGEMENT TOOLS • No opinion or it depends most reviews determine bonus 84% 18% pays and salary increases. 38% 44% 32% satisfied are with their current review system or approach * Rating systems 66% 26% 9% ★★★I* **** The FAVORITE The 5-POINT RATING SCALE is the most common system. % REPORTING TOOL: Microsoft Excel Main benefits of frequent performance reviews: Top benefits of automating performance reviews: More dialogue between managers and employees Better tracks the dynamic nature of business Performance issues are identified faster Make better business decisions Lower costs Increase employee engagement designed by loana Halunga infographic provided by kapta systems Performance Review Processes & Talent Management Challenges in Small Businesses 76% 24% We conducted interviews with organizations in the following industries: Interviewed's locations 84% O USA finance hospitality Internet high-tech marketing manufacturing education professional services non-profit 16% other retail services with: CEOS (2%) • VPs (17%) • Directors (31%) Managers (25%) • Consultans (16%) • Others (9%) Requirements for a Performance Management System a b When talking with potential customers about what they would look for in a performance review system, we consistently heard the following requirements: Simplicity Easy to use, intuitive Encourages managers to have performance conversations with employees Most employees are asked to perform self assessments. Review Cycles and Timing performance reviews 60% are done annually • Cycle based on hire date • Focal review cycle reviews are conducted 25% more than once a year 34% 95% do not conduct formal 15% reviews 66% 85% keep. paper copies of the reviews Performance Review Tools 64% comptencies in performance reviews use • pen and paper • an automated system provided by their payroll vendor or PEO • a commercial software Most track Z87 between competencies 22% 16% Track goals and performance separately 54% 23% • Want to have performance appraisals integrated into an HR suite 64% or would use • Prefer best-of-breed systems SOCIAL PERFORMANCE MANAGEMENT TOOLS • No opinion or it depends most reviews determine bonus 84% 18% pays and salary increases. 38% 44% 32% satisfied are with their current review system or approach * Rating systems 66% 26% 9% ★★★I* **** The FAVORITE The 5-POINT RATING SCALE is the most common system. % REPORTING TOOL: Microsoft Excel Main benefits of frequent performance reviews: Top benefits of automating performance reviews: More dialogue between managers and employees Better tracks the dynamic nature of business Performance issues are identified faster Make better business decisions Lower costs Increase employee engagement designed by loana Halunga infographic provided by kapta systems Performance Review Processes & Talent Management Challenges in Small Businesses 76% 24% We conducted interviews with organizations in the following industries: Interviewed's locations 84% O USA finance hospitality Internet high-tech marketing manufacturing education professional services non-profit 16% other retail services with: CEOS (2%) • VPs (17%) • Directors (31%) Managers (25%) • Consultans (16%) • Others (9%) Requirements for a Performance Management System a b When talking with potential customers about what they would look for in a performance review system, we consistently heard the following requirements: Simplicity Easy to use, intuitive Encourages managers to have performance conversations with employees Most employees are asked to perform self assessments. Review Cycles and Timing performance reviews 60% are done annually • Cycle based on hire date • Focal review cycle reviews are conducted 25% more than once a year 34% 95% do not conduct formal 15% reviews 66% 85% keep. paper copies of the reviews Performance Review Tools 64% comptencies in performance reviews use • pen and paper • an automated system provided by their payroll vendor or PEO • a commercial software Most track Z87 between competencies 22% 16% Track goals and performance separately 54% 23% • Want to have performance appraisals integrated into an HR suite 64% or would use • Prefer best-of-breed systems SOCIAL PERFORMANCE MANAGEMENT TOOLS • No opinion or it depends most reviews determine bonus 84% 18% pays and salary increases. 38% 44% 32% satisfied are with their current review system or approach * Rating systems 66% 26% 9% ★★★I* **** The FAVORITE The 5-POINT RATING SCALE is the most common system. % REPORTING TOOL: Microsoft Excel Main benefits of frequent performance reviews: Top benefits of automating performance reviews: More dialogue between managers and employees Better tracks the dynamic nature of business Performance issues are identified faster Make better business decisions Lower costs Increase employee engagement designed by loana Halunga infographic provided by kapta systems Performance Review Processes & Talent Management Challenges in Small Businesses 76% 24% We conducted interviews with organizations in the following industries: Interviewed's locations 84% O USA finance hospitality Internet high-tech marketing manufacturing education professional services non-profit 16% other retail services with: CEOS (2%) • VPs (17%) • Directors (31%) Managers (25%) • Consultans (16%) • Others (9%) Requirements for a Performance Management System a b When talking with potential customers about what they would look for in a performance review system, we consistently heard the following requirements: Simplicity Easy to use, intuitive Encourages managers to have performance conversations with employees Most employees are asked to perform self assessments. Review Cycles and Timing performance reviews 60% are done annually • Cycle based on hire date • Focal review cycle reviews are conducted 25% more than once a year 34% 95% do not conduct formal 15% reviews 66% 85% keep. paper copies of the reviews Performance Review Tools 64% comptencies in performance reviews use • pen and paper • an automated system provided by their payroll vendor or PEO • a commercial software Most track Z87 between competencies 22% 16% Track goals and performance separately 54% 23% • Want to have performance appraisals integrated into an HR suite 64% or would use • Prefer best-of-breed systems SOCIAL PERFORMANCE MANAGEMENT TOOLS • No opinion or it depends most reviews determine bonus 84% 18% pays and salary increases. 38% 44% 32% satisfied are with their current review system or approach * Rating systems 66% 26% 9% ★★★I* **** The FAVORITE The 5-POINT RATING SCALE is the most common system. % REPORTING TOOL: Microsoft Excel Main benefits of frequent performance reviews: Top benefits of automating performance reviews: More dialogue between managers and employees Better tracks the dynamic nature of business Performance issues are identified faster Make better business decisions Lower costs Increase employee engagement designed by loana Halunga infographic provided by kapta systems Performance Review Processes & Talent Management Challenges in Small Businesses 76% 24% We conducted interviews with organizations in the following industries: Interviewed's locations 84% O USA finance hospitality Internet high-tech marketing manufacturing education professional services non-profit 16% other retail services with: CEOS (2%) • VPs (17%) • Directors (31%) Managers (25%) • Consultans (16%) • Others (9%) Requirements for a Performance Management System a b When talking with potential customers about what they would look for in a performance review system, we consistently heard the following requirements: Simplicity Easy to use, intuitive Encourages managers to have performance conversations with employees Most employees are asked to perform self assessments. Review Cycles and Timing performance reviews 60% are done annually • Cycle based on hire date • Focal review cycle reviews are conducted 25% more than once a year 34% 95% do not conduct formal 15% reviews 66% 85% keep. paper copies of the reviews Performance Review Tools 64% comptencies in performance reviews use • pen and paper • an automated system provided by their payroll vendor or PEO • a commercial software Most track Z87 between competencies 22% 16% Track goals and performance separately 54% 23% • Want to have performance appraisals integrated into an HR suite 64% or would use • Prefer best-of-breed systems SOCIAL PERFORMANCE MANAGEMENT TOOLS • No opinion or it depends most reviews determine bonus 84% 18% pays and salary increases. 38% 44% 32% satisfied are with their current review system or approach * Rating systems 66% 26% 9% ★★★I* **** The FAVORITE The 5-POINT RATING SCALE is the most common system. % REPORTING TOOL: Microsoft Excel Main benefits of frequent performance reviews: Top benefits of automating performance reviews: More dialogue between managers and employees Better tracks the dynamic nature of business Performance issues are identified faster Make better business decisions Lower costs Increase employee engagement designed by loana Halunga infographic provided by kapta systems